AGILE Newsletter Issue 6 | Q2 | 2021

Welcome to the latest edition of the AGILE Reporter newsletter. As always, we wish all of our readers well.

VERMEG continues to invest in AGILE Reporter to ensure that both functionality and reporting scope are aligned with our clients’ priorities.

The latest release, AGILE Reporter 21.2, includes the following features :

Extended Ability To Patch

As we gratefully usher out the most unpleasant year in the lives of many of us, we look forward to the return of normality in 2021, albeit likely to be implemented in phases.

We very much look forward to a time, hopefully in the very near future when we can meet face to face with our clients and friends in the industry.

Regulatory Analysis

AGILE Reporter’s Regulatory Update Service, which ensures that all clients are provided with regulator changes, is a crucial component of the solution. VERMEG have further enhanced the value of this service by allowing users greater flexibility in applying regulator changes. such as updates to individual returns, validations, export templates and submission definitions.

Any additional advantage of the patching facility is that it is ‘hot’ update, i.e. there is no requirement to stop the solution to apply these updates, ensuring that there is no disruption to the regulatory reporting process.

All patching activity is, of course, fully audited.

Restatement

Reporting institutions are, from time to time, requested by the regulator to review and resubmit returns. In the latest release of AGILE Reporter, we have enhanced existing functionality that already allows resubmission to preserve all underlying data and variables – this allows users to drill down to allocations on historical resubmissions in the same way that they able to do with current versions of a return.

Features that will be delivered later this year include :

Expanded API capability

The solution’s API library will be further expanded, e.g. to cover Import adjustments; addition of user administrative privileges. This increases the operational flexibility of the solution allowing further control of AGILE Reporter processes by external workflow tools.

Configuration Manager UI

The addition of a UI for configuration will allow ‘hot’ product installation, i.e. new jurisdictions,  without bringing down the solution thus minimising disruption to end user workflow when these kind of maintenance activities are required.

Sub Regulator Support

This will allow multibranch users of AGILE Reporter to efficiently maintain their reporting processes into differing geographical jurisdictions under the same regulation, for example European country regulators under COREP and FINREP.

In addition to the enhanced functionality described, our Regulatory Updates will include the following:

Capital Requirements Regulation 2 (CRR2)

CRR 2 continues to be a priority for our clients in Europe and, as part of our support for this regime, we are providing the first of a series of phased releases to support the EBA’s Data Point Model  3.0. This release will provide support for the Counterparty Credit Risk, NPE Loss Coverage, NSFR & CR IRB components of the framework.

This will be followed by updates to Group Solvency, Credit Risk, Operational Risk, Prudent Valuation, FINREP, Asset Encumbrance, Additional Monitoring Metrics & Liquidity Coverage Ratio returns. The final tranche will consist of Counterparty Credit Risk changes, CR Equity & Market Risk (FRTB) before work begins on DPM 3.1 build which will conclude a very active year in the area of EBA reporting.

Bank of England

As has been well publicised the Bank of England will change the submission format -from XML to XBRL – and mechanism – from OSCA to BEEDS – for all SRDD returns.

US Federal Reserve

The Federal Reserve is consulting with reporting institutions in the US with regard to potential changes to the FR 2052a by expanding the definition of the term “Transactional Accounts”.

These proposed changes will involve the collection of data related to the Net Stable Funding Ratio (NSFR) including :

1. adding certain new data field definitions;
2. adding clarifying language to parts of the instructions;
3. adding certain new data categories;
4. reclassifying certain existing data categories; and
5. streamlining certain existing language in the instructions.

The current effective date for these changes is July 1, 2021 with the public comment period for the proposal having ended on the 28th of May, but there are suggestions that many institutions are requesting an extension to the implementation date.

VERMEG’s AGILE Reporter team have already started to analyze and develop the solution on the basis of the information currently provided by the regulator to ensure that our US clients impacted are able to implement any changes in a timely manner regardless of the eventual effective date.

As always, please don’t hesitate to contact us to discuss any of the topics above or any other matter relating to Regulatory Reporting.